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Perpetual
chief executive Geoff Lloyd has warned market conditions remain volatile, telling shareholders the fund manager’s underlying profits for the first six months would be little changed from a year ago.

Mr Lloyd said the company expected to make an underlying profit in the range of $30 million to $35 million in the six months to December 31, compared with $34.7 million a year ago. “This outlook is subject to there being no material deterioration in financial markets and business conditions over the remainder of the 2012 calendar year,” Mr Lloyd said.

Last financial year, underlying net profit after tax fell 7 per cent to $68 million. Revenue declined 12 per cent to $358 million. Chairman Peter Scott told shareholders that Perpetual was “clearly operating in a very different and difficult market environment”.

He said the last full-year decline in profits reflected tough conditions and continued investment in the business. “This included a group-wide cost reduction program, the exiting of a number of non-core businesses and lower variable remuneration expenses.”

Several investors criticised the recent performance of the company and urged board members to “have more skin in the game” by boosting their Perpetual share holdings. Another investor described the board as “honourable but disengaged” for allowing the company’s previous management to let so many problems grow.

Mr Lloyd , who replaced Chris Ryan in February and is the third chief in 15 months, said Perpetual had embarked on a renewed strategy, having reduced staff from about 1500 to just over 1000.

“There were two major themes - how to grow the business and fix it,” he said. “We looked at how to simplify, remove complexity and ensure focus. It is not about costs, it is about changing the operating model. It is early days and we are making good progress.”